Problem with alerts is that they are listed like:
Alert | Delete this alert
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And this is it. No info on search settings, no option to edit alerts and all alerts are with same generic name ('Alert') instead of a search string or something more decriptive like checked options etc. until first ad pops-up with a keyword. I also noticed alert system does not detect new ads on my localhost installation with some plugins and theme mods (several factory themes also tested), but it works with Softaculous plain installation on paid hosting.
I forgot to say I was testing this feature without proper mail server setup, just out-of-the-box Softaculous (3.2.0 and 3.2.1). User's registration notifications and account activations are working, so I assume alerts should work, too, at least, in User's dashboard (which they do work on a paid hosting installation). But, emails are not sent to the user, but alerts are registered in User's dashboard (I assume this is because of mail server not setup).
New Edit: [partially solved] I forgot I disabled mail server on localhost, it now registers alerts in User's dashboard on localshost, too. Still, there is something to be desired about alert feature as I have described above.